A $2.2 million expansion of Pictured Rocks Cruises (PRC) is setting the stage for growth in Munising, thanks to a newly approved tax increment financing (TIF) district — a move city officials believe will benefit more than just one business.
“This project could potentially serve as a catalyst for future growth and expansion projects,” said Mayor Christine Berry. “It’s a strategic investment in the future of downtown.”
Approved unanimously by the Munising City Commission this month, the expansion plan is now under the shared oversight of the Munising Downtown Development Authority and the Alger County Brownfield Redevelopment Authority (BRA). The TIF district, carved specifically around the Pictured Rocks Cruises parcel, is located along the Lake Superior shoreline and operates within the city’s existing brownfield district.
While Pictured Rocks Cruises pursues immediate upgrades, including a 4,000-square-foot lakefront building addition and improved ADA accessibility, the long-term value for the community is far broader, city officials said.
“Brownfields aren’t just about cleaning up contamination,” said City Manager Devin Olson. “They’re also about revitalizing underused or functionally obsolete sites. That’s exactly what this project does.”
What’s happening: Munising has created a tax increment financing district along the Lake Superior shoreline around Pictured Rocks Cruises. Such a district allows local governments to capture and reinvest the increase in property tax revenue that results from new development. In this case, property taxes on the PRC parcel will be frozen at 2025 levels. Any taxable value increase — estimated to jump from $332,400 to $1.29 million — will be used to reimburse the developer for up to $522,305 for site improvements over a 14-year period.
“This is a performance-based incentive,” Olson said. “If the improvements don’t happen, or the property doesn’t reach projected value, reimbursements are reduced accordingly.”
Once the capture period ends (capped at 17 years to include administrative time), the full tax benefits return to the Downtown Development Authority and the city. Starting in 2043, the improved parcel could generate $39,000 in new tax revenue each year.
Past success: Munising is no stranger to brownfield-backed redevelopment. In 2016, the city approved a plan for the ROAM Inn — a boutique hotel and restaurant transformed from a former assisted living facility. The $2.5 million project, led by local entrepreneur Tom Dolaskie IV, used $157,000 in eligible brownfield expenses and quickly became a tourism anchor.
“We’ve seen firsthand how these tools can transform underutilized buildings into key parts of our economy,” said Olson. “ROAM was proof of concept. This PRC expansion builds on that momentum.”
Community-wide benefits: PRC’s expansion is expected to enhance the visitor experience for the thousands of tourists who board the iconic cruises each summer. But local officials say the impact won’t stop at the dock.
“A better experience at Pictured Rocks Cruises means more people staying in town, shopping, dining, and spending money,” said Kathy Reynolds, who is director of the Munising Downtown Development Authority. “That helps every other business downtown.”
The authority will continue to receive its baseline tax revenue throughout the TIF term, ensuring no cuts to its operating budget. Meanwhile, PRC’s upgrades — including modernized restrooms and new amenities — are expected to boost foot traffic and downtown vitality.
Munising Public Schools also stand to benefit. Thanks to a state reimbursement program, the district will receive dollar-for-dollar replacement of the $100,000 in school tax capture. Starting in 2026, it will also receive an annual increase of $22,000 — funds that wouldn’t exist without the new development.
What’s next: Construction is expected to begin this year. The Alger County BRA will oversee administration of the TIF, ensuring expenditures align with approved costs. The DDA will continue focusing on long-term improvements across the district, including infrastructure, beautification, and small business support.
“We’re always balancing long-term growth with current needs,” Reynolds said. “At the end of this plan, the downtown tax base will be significantly stronger.”
Even though the financial benefits will initially go toward reimbursing PRC, officials say the bigger win belongs to the broader community.
“This isn’t just about one business,” Reynolds said. “It’s about building a downtown that’s thriving — for visitors, for residents, and for the future of Munising
Jennifer Champagne is an accomplished entertainment + visual effects writer with a passion for storytelling. When she’s not crafting articles on industry giants, you’ll find her enjoying life with her family and their three crazy golden retriever floofs at home in middle earth.
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